Tax breaks for 2014

Good Day Colorado
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Rachel Namoff from Arapaho Asset Management takes a look at tax breaks for 2014.

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In December,  President Obama and the congress passed a new bill to allow taxpayers additional tax deductions.  There are quite a few that most likely will not apply to us, however there are some that may be of use to you.

  1. Mortgage Insurance Premiums-you can now deduct the cost of your mortgage insurance premiums if you itemize your deductions.
  2. Teachers can now write off $250 annually for supplies bought for the classroom-this does not need to be an itemized deduction.
  3. College expense credit- With it, you may deduct up to $4,000 in qualified tuition, fees and related expenses for post-secondary education, such as college and graduate school. The deduction may be taken for yourself, your spouse or your dependents.
  4. Give away part of your IRA-if you are over the age of 70 1/2 you are required to do a minimum distribution from your IRA accounts.  The bill now allows you to take the RMD and give to charity tax-free

 

If you are not 70 1/2 this last item is irrelevant.  Here’s what is relevant.

  1. Your time and your money are either working for you or against you
  2. Let’s put your money and time to work for you!
    1. Compound Interest is the eight wonder of the world.  He who understands it, earns it.  He who does not, pays it. -Albert Einstein
    2. Us common folks may not be Albert Einstein but that does not mean we cannot take advantage of compound interest.
  3. Instead of spending your tax savings on that impulse buy, pay your self first and put the savings into a retirement account to work for you
  4. Our office offers classes on retirement planning that are educational and tax deductible within the new guidelines!

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